Getting a raise at work means it’s time to bump up your life insurance coverage.
If you’ve just gotten a raise at work, then congratulations! With more money in your pocket, you probably have big plans for yourself and your family. Hopefully, one of these plans is bumping up your life insurance coverage. But why should you celebrate a raise by increasing your life insurance? Here’s what you need to know.
Why a Raise Should Result in a Life Insurance Increase
If you’ve just gotten a raise at work, then this means that you and your family can now afford a better quality of life. As your standard of living increases, so does your family’s expectations. However, if you were to die unexpectedly, then your current life insurance coverage may not be enough to maintain your family’s new lifestyle. This could leave your loved ones to struggle financially. Rather than putting your family through this turmoil, you should increase your life insurance coverage every time that you receive a significant raise at work. This way, you can continue providing for the people you care about, regardless of what the future holds.
What to Consider When Increasing Your Life Insurance Coverage
When come it comes time to increase your life insurance coverage, you should consider the following factors:
- Your total income– Don’t raise your coverage by an arbitrary amount. Make sure your coverage increase is proportional to your salary increase.
- Where you live– Consider your cost of living when increasing your coverage so your family can continue to cover routine costs like your home mortgage, groceries, gas, and so on.
- How much money your family needs to live– While tedious, you should add up your family’s everyday expenses. You need to make sure that your life insurance coverage is enough to take care of these costs.
This is why you should increase your life insurance coverage after getting a raise at work. Do you have more questions about your life insurance coverage? If so, then contact the experts at Randy Jones Insurance Services in Pleasanton, California. We are ready to assist you with all your life insurance needs today.